Samsung Electronics Plant in Bangladesh

DHAKA: As the popularity of South Korea’s Samsung products continues to grow by day in Bangladesh, the company has decided to assemble an electronics plant in this country. As the initiative of the plan, Samsung is establishing a plant in Narsingdi district near Bangladesh capital, Dhaka city. The foundation stone of the manufacturing plant on 16 acres of land was unveiled on June 15 by Bangladesh Industries Minister Amir Hossain Amu.

Fair Electronics Limited of Bangladesh has partnered with Samsung in the initiative; Samsung will provide technological help for the manufacturing of products. The plant is expected to produce 400,000 refrigerators, 250,000 microwave ovens, 120,000 air-conditioners, 200,000 TVs, and 50,000 washing machines annually. A total of 100 million USD will be invested in the plant and it will generate 3,000 jobs.

Samsung products are popular amongst the Bangladesh population. Samsung TV, refrigerators, and air-conditioners are the standard electronic items in middle and upper class families while Samsung mobile phones are favorites for all social classes. The Korean company has been carrying out business affairs in Bangladesh for a long time, and now it has several dozens of show rooms and outlets in Dhaka with additional outlets in all 64 administrative districts of the country. The number of outlets in rural areas has been increasing, attracting more product consumers outside major cities.

There is no question about the quality of Samsung products. But the fact remains that Samsung products are oftentimes higher than similar products made by other companies. Not only this, because these electronics are imported, all products are brought with an import tax on top of the original price. Therefore, concerned officials initiated a plan to locally set up a Samsung electronics plant to reduce prices and generate more employment. Reductions in cost of electronics would substantially enhance Samsung marketing in Bangladesh, already a thriving market 160 million members.

After unveiling the foundation stone at Kamargaon in Shibpur Upazila of Narsingdi district on June 15, Industries Minister Amu said, “The establishment of this plant by world renowned Samsung proves that there is a good investment condition in Bangladesh and our customers will be able to buy Samsung products at cheaper rates.”

The minister expressed the hope that the plant would encourage more such investments in Bangladesh and said, “Similar investments will bring Bangladesh the status of developed country before 2041.”

Bangladesh State Minister for Information and Communication Technology (ICT) Zunaid Ahmed Palak, who was present at the ground breaking ceremony, announced that the plant would be the first private high-tech park in the country.

Seungwon Youn, Managing Director of Samsung Electronics Bangladesh, added that the plant would play a key role in creating jobs, raising revenue, and development of business in Bangladesh.

Fair Electronics Managing Director Ruhul Alam Al Mahbub said it would be the largest technology-based industrial plant in the country.

Among those present at the unveiling of the foundation stone of the plant was South Korean Ambassador for Bangladesh, Ahn Seong-doo.

Also in praise of the initiative, economist Dr. R.M. Debnath said the plant would largely contribute to the country’s industrial development and economy and generate employment. He expressed the hope that the establishment of the plant would strengthen economic cooperation between the leading cities, Dhaka and Seoul.